The best-performing funds in 2024 were US large-cap growth funds, while Latin America vehicles struggled.
Morningstar data reveals that 35 Morningstar Medalist Rated funds saw returns above 30% in 2024. The theme for the year is clear: US large-caps and technology reigned supreme.
As highlighted in our recent summary of US market performance, the Morningstar US Communication Services Index rose 39.13% in 2024, while the Morningstar US Technology Index climbed 36.16%. The overall Morningstar US Market Index ended the year up 24.09%.
Two Alger funds top the list with returns above 50%: Alger Focus Equity and Alger American Asset Growth. Both have almost 30% of their holdings in three Magnificent Seven stocks, with an approximate 10% split across Amazon AMZN, Microsoft MSFT and Nvidia NVDA in each case.
Of the 3,200 funds in Morningstar’s database that are available for sale in the UK, only around 300 had a bad 2024. 33 witnessed double-digit losses. By contrast, over 1,000 funds grew 10% or more.
Latin America funds account for the majority of the bottom 10 performers, alongside two funds investing in the energy transition and climate change. The worst two performers were BlackRock Latin American and HSBC Brazil Equity. They fell more than 30% over the year. The mining giant Vale VALE, which fell 43% in 2024, is the biggest holding for both funds (7% and 9% of the funds, respectively).
US Large-Caps and Technology Top 2024’s Performance List
Alger Focus Equity
The actively-managed Alger Focus Equity fund gained 54.53% in 2024, outperforming the average fund in the US large-cap growth equity Morningstar Category, which rose 25.72%. The fund placed in the first percentile for performance and beat its benchmark, the Morningstar US Large-Mid Cap Broad Growth Index, by 19.34 percentage points. The £27.2 million fund has gained 14.4% over the past three years, while the average fund in its Category is up 7.28%.
Alger American Asset Growth
Alger American Asset Growth rose 50.51% in 2024. The fund also placed in the first percentile for performance and beat the same index, the Morningstar US Large-Mid Cap Broad Growth Index—by 15.32 percentage points. The £451.7 million fund has climbed 12.72% in the past three years.
Lord Abbett Innovation Growth
The actively-managed Lord Abbett Innovation Growth fund gained 45.89% in 2024, outperforming the US large-cap growth equity Morningstar Category average of 25.72%. The fund placed in the first percentile for performance and beat its benchmark, the Morningstar US Large-Mid Cap Broad Growth Index, by 10.7 percentage points. The £165.2 million fund has gained 8.24% over the past three years.
SVS Aubrey Global Conviction
The £52.1 million SVS Aubrey Global Conviction fund is the only strategy in the top five that doesn’t have a US large-cap growth focus, but instead invests in flex-cap globally. The fund rose 45.04% in 2024, a gain that beat the 8.96% return of the average fund in that Morningstar Category, leaving it in the first percentile for performance. The fund beat its benchmark—the Morningstar Global All Cap Target Market Exposure Index—by 25.49 percentage points. Over the past three years, the Aubrey Capital fund fell 0.71%, while the average fund in its Category rose 2.14%.
Morgan Stanley Investment Funds US Growth
Morgan Stanley US Growth gained 43.81% in 2024, outperforming the average fund in the US large-cap growth equity Category and beating the Morningstar US Large-Mid Cap Broad Growth Index benchmark by 8.62 percentage points. Over the past three years the £2.8 billion actively-managed fund has lost 3.19%.
Latin America and Energy Transition Lagged in 2024
BlackRock Latin American
The actively-managed BlackRock Latin American fund lost 32.33% in 2024, falling further than the average fund in the Latin America equity Category, which fell 25.92%. The fund placed in the 99th percentile for performance and fell further than its benchmark, the Morningstar Emerging Markets Americas Target Market Exposure Index, by 8.12 percentage points. The £403.2 million fund has gained 2.19% over the past three years, while the average fund in its category is up 1.69%.
HSBC GIF Brazil Equity
In 2024, the actively-managed HSBC GIF Brazil Equity fell 31.04%, while the average Brazil equity fund lost 30.06%. The fund placed in the 60th percentile for performance and fell further than its benchmark, the Morningstar Brazil Target Market Exposure Index, by 4.05 percentage points. The £86.7 million fund has dropped 0.85% over the past three years, falling further than the average fund in its Category, which fell 0.13%.
abrdn Latin American Equity
The £69.5 million abrdn Latin American Equity fell 27.93% in 2024. The loss on the actively-managed fund was worse than the 25.92% loss on the average fund in the Latin America equity Category, leaving it in the 72nd percentile for performance. The fund underperformed the Morningstar Emerging Markets Americas Target Market Exposure Index by 3.72 percentage points. Over the past three years, the abrdn fund has risen just 0.4%, while the average fund in its Category rose 1.69%.
Barings Latin America
The actively-managed Barings Latin America fund lost 27.24% in 2024, falling further than the average fund in the Latin America equity Category, which fell 25.92%. The fund placed in the 60th percentile for performance and fell further than the Morningstar Emerging Markets Americas Target Market Exposure Index, by 3.03 percentage points. The £128.2 million fund has gained 3.96% over the past three years.
Schroder Global Energy Transition
In 2024, Schroder Global Energy Transition fell 26.15%, while the average equity alternative energy fund lost 10.94%. This actively-managed fund placed in the 91st percentile for performance and lagged its benchmark, the Morningstar Global Markets Renewable Energy Index, by 27.1 percentage points. The £252.9 million fund has dropped 12.5% over the past three years, falling further than the average fund in its Category, which fell 10.01%.
This article was generated with the help of automation and reviewed by Morningstar editors. Learn more about Morningstar’s use of automation.
The author or authors do not own shares in any securities mentioned in this article. Find out about Morningstar’s editorial policies.
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